India’s Pulses Scenario
A research paper prepared under the project
Agricultural Outlook and Situation Analysis Reports
National Council of Applied Economic Research
Parisila Bhawan, 11, I.P Estate, New Delhi
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India’s Pulses Scenario
National Council of Applied Economic Research
New Delhi
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India’s Pulses Scenario
Introduction
This paper analyzes India’s pulse production, consumption, price and trade trends. India is the
largest producer, largest consumer and the largest importer of pulses in the world. In India
Pulses are grown in around 24-26 million hectares of area producing 17-19 million tonnes of
pulses annually. India accounts for over one third of the total world area and over 20 per cent of
total world production. India primarily produces Bengal gram (chickpeas), red gram (tur), lentil
(masur), green gram (mung) and black gram (urad). For majority of vegetarian population in
India, pulses are the major source of protein. Pulses and pulse crop residues are also major
sources of high quality livestock feed in India.
Production Trend
In India pulses are cultivated on marginal lands under rain fed conditions. Only 15% of the
area under pulses has assured irrigation. Because of the high level of fluctuations in pulse
production (due to biotic and abiotic stress) and prices (in the absence of an effective
government price support mechanism) farmers are not very keen on taking up pulse cultivation
despite high wholesale pulse prices in recent years. Farmers are getting attracted towards cash
crops like Bt cotton, maize and oilseeds (mainly soybeans) because of better return and lower
risk. Consequently area under these crops has increased over the years to the detriment of
pulses (Table 1).
Table1: Area Production and Yield of Total Pulses in India
Year
Area (million hectares) Production(million tonnes)
Yield (kg./ hectares)
1980-81
22.46
10.63
473
1990-91
24.66
14.26
578
2000-2001
20.35
11.08
544
2010-11
26.40
18.24
691
2011-12
24.46
17.09
699
2012-13
23.47
18.34
781
Nevertheless, improvement in yields, albeit modest, has contributed to higher pulse production in
recent years (Figure 1). Most of the increase in pulse production in recent years has been in gram
(Figure 2). Low pulse yield in India compared to other counties is attributed to poor spread of
improved varieties and technologies, abrupt climatic changes, vulnerability to pests and diseases,
and generally declining growth rate of total factor productivity
.
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Figure 1: Trend in Area, Yield, and Production of Pulses
2000
1800
25
1600
1200
1000
15
800
10
600
400
5
200
0
Area
Production
Yield
Linear (Area)
Linear (Production)
Figure 2: Trend in Pulse Production by Type
25
Million Tonnes
20
15
10
5
0
Gram
Tur
Mung
2
Urad
Other
2013-14 F
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
0
Linear (Yield)
Kgs/Hectare
1400
20
2001-02
Area(Million Hectares)/Production (Million Tonnes)
30
In order to give the much needed fillip to pulse production, the government has included pulses
in the NFSM (along with wheat and rice) since the launch of NFSM in October 2007 and has
been significantly increasing the MSP for most pulses. Over the past four years, the increase in
MSP was a massive 87 percent for tur, 71 percent for urd, and 63 percent for mung. Among rabi
pulses MSP for gram for MY 2014-15 was fixed at Rs. 3,100 per quintal and masur at Rs, 2,950
per quintal, although a modest increase over the MY 2013-14 level of Rs. 3,000 and Rs. 2,900
per quintal, nevertheless a massive increase of 76 percent and 58 percent, respectively, since
2010-11 (Figure 3).
Rupees per Qunital
Figure 3: Trend in Minimum Support Prices for Pulses
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Tur
1550
2000
2300
3000
3200
3850
4300
Mung
1700
2520
2760
3170
3500
4400
4500
Urad
1700
2520
2520
2900
3300
4300
4300
Gram
1445
1600
1730
1760
2100
2800
3000
3100
Masur
1545
1700
1870
1870
2250
2800
2900
2950
Consumption and prices
Pulse production has recorded less than one percent annual growth during the past 40 years,
which is less than half of the growth rate in Indian human population. Consequently per capita
production and availability of pulses in the country has witnessed sharp decline. Per capita net
pulse availability has declined from around 60 grams per day in the 1950s to 40 grams in the
1980s and further to around 35 grams per day in 2000s. However, in the past four years, there
has been significant increase in consumption averaging around 50 grams due to somewhat higher
production, thanks to the National Food Security Mission (NFSM) focus on pulses, and larger
imports, mostly of dry peas from Canada and Australia (Figure 4).
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Figure 4: Per capita net availability of pulses
80
70
Grams/day
60
50
40
30
20
10
0
1951 1961 1971 1981 1991 2001 2005 2006 2007 2008 2009 2010 2011 2012
Higher production combined with larger imports has resulted in a marginal increase in pulse
consumption estimated at around 50 grams per day in 2012-13 compared to less than 40 grams
prior to 2012-13. This level of consumption is estimated to have been maintained in 2013-14.
Lager imports of dry peas in recent years due its lower international prices have resulted in its
increased share in the domestic pulse consumption.
The increasing mismatch between production and consumption of pulses has resulted in larger
imports of pulses in recent years. Imports of pulses in 2012-13 (Apr-Mar) were a record 4.0
million tonnes an increase of 500,000 tonnes over 2011-12. 2012-13 imports included 1.37
million tonnes of dry peas and dun peas (mattar), 506,000 tonnes of pigeon pea (tur), 642,000
tonnes of green pea (mung), 698,000 tonnes of chick peas, 506,000 tonnes of lentil (masur),
84,000 tonnes of kidney beans (rajma), 180,000 tonnes of other beans and 24,000 tonnes of other
pulses. Imports in 2013-14 through November 2013 at 2 million tonnes were about 500,000
tonnes behind imports during the corresponding period of 2012-13 reflecting larger domestic
production and higher cost of imported pulses due to the depreciation of Indian rupee against
US$. Total imports in 2013-14 are projected at 3.5 million tonnes.
Domestic price inflation for pulses as a group measured by Wholesale Price Index remained in
the negative territory since June 2013, largely due a significant decline in gram prices, the major
pulse in India. Price inflation in other pulses, mainly mung and masur, although showing some
declining trend, remained high in 2013 (see Figure 5). Due to expected higher production of
gram in 2014, price inflation of pulses as a group is likely to remain subdued in 2014-15, unless
the 2014 kharif season pulse crop declines significantly.
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Figure 5: Wholesale Price Inflation Trend in Pulses (% change in 2013 over 2012)
% Change 2013 over 2012
30.0
20.0
10.0
0.0
-10.0
-20.0
-30.0
All Pulses
Gram
Arhar
Mung
Masur
Urad
Jan
15.9
22.5
7.9
19.6
18.1
-0.4
Feb
14.0
16.4
11.4
17.8
19.1
3.2
Mar
10.8
7.6
17.1
17.1
20.2
5.5
Apr
10.5
4.5
20.6
19.1
23.0
6.8
May
5.9
-2.2
16.6
18.5
15.8
7.0
Jun
1.6
-9.2
14.2
20.1
15.6
4.6
Jul
-7.4
-19.8
5.1
12.1
11.7
0.8
Aug
-14.7
-27.2
-2.6
3.4
6.4
-5.4
Sep
-13.4
-25.5
-2.8
8.8
6.1
-7.1
Oct
-10.7
-23.9
0.6
14.3
6.0
-2.7
Nov
-10.6
-26.2
3.9
14.5
6.9
3.9
Dec
-7.2
-23.5
9.2
16.9
12.5
5.2
Trade
India imported about 4 million tonnes of pulses during 2012-13. Although based on current
assessment kharif pulses production in 2013-14 has remained nearly the same as in 2012-13, due
to a likely increase in rabi season pulse production, imports are expected to decline marginally
during 2014-15. .
From Figure 6 it is seen that import of pulses in 2013 has shown a decline in September. Gram
imports were the highest in January, but became negligible thereafter as domestic production was
at a record level. Dry pea imports are seen to be fluctuating while masur imports increased till
July 2013. Overall, import requirements may be of the order of 3.8 million tonnes in the current
year.
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Figure 6: Month wise Pulse Import during 2013
2.5
Lakh tonnes
2
1.5
1
0.5
0
Jan
Feb
Mar
Chana
Pea
Apr
May
Jun
Urd & Moong
Jul
Tur
Aug
Sep
Masoor
Despite being world’s largest producer of pulses, only small exports of pulses are taking place
from India, both because of restrictions on exports and the high domestic demand. The supplydemand balance sheet for pulses is provided in Table 2.
Table 2: Demand and Supply Balance Sheet for Pulses (000 tonnes)
Total pulses
2010-11
2011-12
2012-13
Production
18,240
17,090
18,340
Imports
2,780
3,500
4,010
Total supply
21,020
20,590
22,350
Total Export
209
175
200
Domestic Use
20,811
20,415
22,150
Total utilization
21,020
20,590
22,350
% imports to
15.2
20.5
21.7
production
2013-14
19,770
3,500
23,270
200
23,070
23,270
17.8
Summary and Conclusion
Because of the high level of fluctuations in pulse production (due to biotic and abiotic stress) and
prices (in the absence of an effective government price support mechanism) farmers are not very
keen on taking up pulse cultivation despite high wholesale pulse prices in recent years.
Nevertheless, improvement in yields, albeit modest, has contributed to higher pulse production in
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recent years, with most of the increase in pulse production in recent years in gram. Low pulse
yield in India compared to other counties is attributed to poor spread of improved varieties and
technologies, abrupt climatic changes, vulnerability to pests and diseases, and generally
declining growth rate of total factor productivity.
In order to give the much needed fillip to pulse production, the government has included pulses
in the NFSM (along with wheat and rice) since the launch of NFSM in October 2007 and has
been significantly increasing the MSP for most pulses. This has resulted in an above normal
growth in pulse production in recent years.
In the past four years, there has been significant increase in pulse consumption averaging around
50 grams due to somewhat higher production and larger imports, mostly of dry peas from
Canada and Australia.
The increasing mismatch between production and consumption of pulses has resulted in larger
imports of pulses in recent year with imports in 2012-13 (Apr-Mar) reaching a record 4.0 million
tonnes an increase of 500,000 tonnes over 2011-12.
Despite being world’s largest producer of pulses, only small exports of pulses are taking place
from India, both because of restrictions on exports and the high domestic demand.
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References
1. Agricultural Statistics at a Glance, 2013, Directorate of Economics and Statistics,
Ministry of Agriculture. Directorate of Economics and Statistics http://eands.dacnet.nic.in
2. Department of Agriculture and Cooperation - www.agricoop.nic.in
3. Agriwatch - Commodity Prices India, Commodity Markets – www.agriwatch.com
4. India Pulses & Grains Association, Mumbai – www.ipga.co.in
5. Commission for Agriculture Costs and Prices - http://cacp.dacnet.nic.in/
6. Office of the Economic Adviser - www.eaindustry.nic.in
7. Central Statistical Organisation - http://mospi.nic.in
8. Directorate General of Commercial Intelligence and Statistics – www.dgciskol.nic.in
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